Dabur India’s margins remain under pressure due to the price hike across commodities.
Dabur India share price shed over a percent intraday on August 4, a day after the company declared its June quarter results.
The FMCG major on August 3 reported a 28 percent surge in its net profit for first quarter (Q1FY22) ended June to Rs 437 crore as compared to Rs 342 crore reported in the year-ago period.
The company’s revenue for the period also witnessed a 32 percent climb YoY and stood at Rs 2,612 crore. Last year in Q1, the company had reported consolidated revenue of Rs 1,980 crore.
Also read: Dabur Q1 Results: Firm reports 28% YoY jump in PAT at Rs 437 crore, revenue surges 32%
Dabur India also registered a rise in its topline and bottmline, sequentially, when compared to the fourth quarter (Q4) of FY21. Its net profit in Q1FY22, grew 16 percent and revenue jumped 12 percent quarter-on-quarter (QoQ) as compared to the preceding quarter. It had reported a PAT of Rs 452 crore in Q4 and the revenue from operations stood at Rs 2,337 crore.
The stock was trading at Rs 603.15, down Rs 10.85, or 1.77 percent. It has touched an intraday high of Rs 615.95 and an intraday low of Rs 602.05.
The global research firm CLSA has downgraded the stock to outperform from buy and has raised target to Rs 700 from Rs 650 per share. "The company remains our preferred consumer pick even as we lower rating. Q1 results were better than expected with sales and EBITDA up 32% and 33% respectively," it said, according to a CNBC-TV18 report.
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The company is confident on driving double-digit growth in FY22 and sustaining margin YoY. It strengthened the fundamentals of its non-healthcare portfolio. We lift our multiple to 55x from 52x and lower our rating on the back of strong re-rating, the brokerage firm said.
Domestic brokerage firm Arihant Capital expects Dabur to report a revenue/EBITDA/PAT CAGR of 13.4%/15.3%/14% to Rs 12,297 crore/Rs 2,662 crore/Rs 2,089 crore, over FY21-FY23E, respectively. We maintain hold rating with a target of Rs 653 per share (PE of 55x on FY23E).Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.